As it was expected, Royal Dutch Shell plc (ADR) (NYSE:RDS.A) and representatives from the Bodo Community in Ogoni, have not reached an agreement for the damages caused by an oil spills occurred in 2008. According to lawyers representing the Bodo Community, a request for a trial will be submitted to the British court to request and set a timetable.
The resolution of the case has brought lots of attention because it will set precedent for other ongoing similar claims. Hence, the oil & gas industry is closely following the litigation and its developments. A spokesman for Royal Dutch Shell plc (ADR) (NYSE:RDS.A)’s has made public the company’s comfort “to have made progress in relation to cleanup”.
Royal Dutch Shell plc (ADR) (NYSE:RDS.A) is said to have offered $46.3 million in compensation for the damage caused. According to Leigh Day, the law firm hired to represent the Bodo Community, explained that the compensation amounted to $1,700 per individual. “The settlement figures are totally derisory and insulting to these villagers”, Martin Day of the London-based firm added.
The agreement was doomed from the beginning since parts disagree over the amount of oil spilled. Hence, the assessment over damages presented by each contender greatly differs. Royal Dutch Shell plc (ADR) (NYSE:RDS.A) contracted an independent team to build a report, concluding that 4,100 barrels were lost. But, independent experts hired by Leigh Day argue that 600,000 barrels have been spilt.
On another note, Royal Dutch Shell plc (ADR) (NYSE:RDS.A), together with Oil & Natural Gas Corp (ONGC), is poised to block China’s Sinochem Group from obtaining Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR)’s 35% stake from a producing offshore block. The deal is rumored to be close to $1.54 million. Royal Dutch Shell plc (ADR) (NYSE:RDS.A) operates the block and holds a 50% stake, while ONGC owes 15%.
Last, Royal Dutch Shell plc (ADR) (NYSE:RDS.A) announced the repurchase of 760,000 shares at $34.58 per share. After cancellation, remaining shares of type A will stand at 3,821,611,712, while remaining type B shares stand at 2,505,626,817.
Disclorure: Jodor Jalit holds no position in any of the stocks mentioned